Industries with the Highest Profit Margin in Australia in 2021

1. Financial Asset Investing in Australia

Profit Margin 2021: 58.8%

The Financial Asset Investing industry has benefited from a strong domestic sharemarket performance for most of the past five years. Typically, industry funds are invested in equities and industry revenue depends on the performance of global sharemarkets. The outbreak of COVID-19 in 2019-20 has led to significant disruption in both local and global equity markets. Consequently, industry revenue is expected to decline at an annualised 1.7% over the five years through 2020-21, to $10.0 billion. This includes an anticipated decline of 3.4% in the current year.

Market volatility has continued to impact the industry since the GFC. Economic and geopolitical unrest... Learn More

2. Toll Road Operators in Australia

Profit Margin 2021: 41.7%

Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. The Toll Road Operators industry's revenue from individual toll roads is typically stable. Individual assets grow in popularity with motorists over their lifetime, as congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

3. Online Advertising in Australia

Profit Margin 2021: 35.0%

The Online Advertising industry has grown over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is moderately concentrated, with the top four players accounting for over half the industry. Google is the dominant player in the industry, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts significant advertising revenue from its online video service, YouTube. The outbreak of COVID-19 in early 2020... Learn More

4. Organic Livestock and Poultry Farming in Australia

Profit Margin 2021: 32.4%

Revenue for the Organic Livestock and Poultry Farming industry has grown strongly over the past five years. The acceptance of organic products as a healthy food option has supported revenue growth over the period. In particular, organic meat has surged in popularity, contributing to the industry's rapid expansion. However, drought conditions have severely affected supply, particularly over the two years through 2018-19, constraining growth. As a result, industry revenue is expected to rise at an annualised 5.1% over the five years through 2020-21, to $699.1 million. Mostly positive demand conditions have supported industry profitability. However, rising costs and an influx... Learn More

5. Dental Services in Australia

Profit Margin 2021: 31.9%

Australia's ageing and growing population has supported the Dental Services industry over the past five years. In contrast with other health services, the Dental Services industry is predominantly privately funded. While most individuals pay for dental check-ups and procedures with their own income, some use private health insurance extras cover to subsidise the cost. Therefore, patients with private health cover tend to be more willing to visit their dentist regularly and undergo expensive procedures. In 2018-19, private health insurance companies paid $2.8 billion in dental benefits for 42.9 million out-of-hospital dental services. However, a slight fall in private health insurance... Learn More

6. Online Car Classifieds in Australia

Profit Margin 2021: 31.8%

The Online Car Classifieds industry's growth has slowed over the past five years. New passenger vehicle sales have declined over the period as deteriorating economic conditions negatively affected credit availability, constraining industry demand. In particular, the COVID-19 pandemic drove a significant fall in industry revenue in 2019-20 as restrictions on movement and gatherings reduced demand for motor vehicles and accompanying classified ads. Nevertheless, online car classifieds operators have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Industry revenue is expected to increase at an annualised 0.4% over... Learn More

7. Bauxite Mining in Australia

Profit Margin 2021: 30.8%

Australia is the world's largest bauxite producer, accounting for approximately one-third of global output. Bauxite production in Australia is projected to reach 101.5 million tonnes in 2020-21, up from 81.5 million tonnes in 2015-16. Expansion projects at several bauxite mines have contributed to this growth in production and have increased mine output to meet higher demand over the past five years. While most bauxite mined in Australia is locally processed into alumina, exports are projected to account for 44.5% of the Bauxite Mining industry's revenue in the current year. In contrast, competing bauxite imports are negligible.

A small number of firms... Learn More

8. Industrial and Other Property Operators in Australia

Profit Margin 2021: 30.5%

Demand for the Industrial and Other Property Operators industry has been varied over the past five years. Prior to the COVID-19 pandemic, business inventories and merchandise trade increased, boosting demand for warehousing, transport and logistic facilities. Additionally, positive business confidence coupled with a low interest rates encouraged investment in industrial property. Although industrial property prices have increased over the past five years, weaker demand for certain industrial property types has reduced the average rental yield. The negative effects of COVID-19 are expected to erode any industry revenue growth over the past five years. As a result, revenue is expected to... Learn More

9. Grain Growing in Australia

Profit Margin 2021: 29.9%

The Grain Growing industry is export oriented and produces wheat, barley, canola, and other grains and oilseeds. Industry revenue has fluctuated significantly over the past five years, largely due to volatile weather conditions affecting local supply in certain years. Fluctuations in global grain prices and crop supplies over the period have further contributed to revenue volatility. Industry revenue is expected to grow at an annualised 2.6% over the five years through 2020-21, to $14.1 billion. Industry profit margins have grown due to higher output volumes. Industry revenue is anticipated to rise 44.4% in the current year, as the industry benefits... Learn More

10. Office Property Operators in Australia

Profit Margin 2021: 29.2%

Operating conditions in the Office Property Operators industry have been volatile over the past five years. Prior to the outbreak of COVID-19 in 2019-20, solid demand from superannuation funds looking to benefit from steady long-term returns had supported the industry. Additionally, the gradual shift to a serviced-based economy over the past five years had increased the amount of non-manual employees in the workforce, and therefore demand for office floorspace. However, tenants have moved from premium-grade offices towards A-grade and B-grade offices over the period, due to rising rental costs. Furthermore, the popularity of hot desking and shared office spaces has... Learn More